What is the minimum amount you need to deposit

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Reference no: EM132003087

Suppose you are attempting to save $5,000 for a trip to Australia, over a span of 20 months. You open a special account with a 1.2% rate that compounds every month.

(a.) If you put $300 into the account each month, will you reach your goal? If so, by how much will you "overshoot" $5,000? If not, by how much will you be short?

(b.) What is the minimum amount you need to deposit in your account each month in order to reach $5,000 in 20 months?

(c.) Suppose that Aunt Josie gives you $400 to start saving for the trip. By how much would that reduce your minimum monthly deposit?

Make a separate table for each part and label them appropriately.

Reference no: EM132003087

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